A DECISIVE election result will make Britain’s economic future brighter and ensure stability for the country, experts forecast in the wake of the shock General Election announcement.

Experts forecast a decisive election result will make Britain's economic future brighter

With recent poll results suggesting between a 17-point and 21-point Conservative lead, many are welcoming the ‘certainty’ a Conservative victory would bring.

On hearing the news, the pound surged to a two-month-high against the dollar climbing to $1.2765 by the end of trading, up 1.62 per cent on the day, the highest climb since 13 December and sterling’s biggest one day jump.

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Against the euro the pound rose to €1.926, up one per cent per cent on the day.

The shift prompted a rare comment on the currency from the Chancellor, Philip Hammond, who said it demonstrated “the confidence that the markets have in the future for this country under a Tory government with a new mandate”.

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Recent poll results suggest a 17-point and 21-point Conservative lead

Live from 10 Downing Street: Theresa May calls snap general election

Tue, April 18, 2017

Theresa May has made the announcement to call for an early general election to be held on June 8 2017

Britain's Prime Minister Theresa May speaks to the media outside 10 Downing Street, in central London

And think-tank The Centre for Economics and Business Research said a Conservative victory on June 8 could bolster economic and political stability, encouraging firms to invest and supporting economic growth.

I see the decision to hold a General Election in June as a positive for the property market

Last October the Fund had forecast 2017 UK growth of just 1.1 per cent.

Paul Mumford, a fund manager at Cavendish Asset Management, said: “Everything points to the Tories being elected with a substantially increased majority which will give the Government a firm mandate and put it on steadier, more solid ground as it begins the difficult, complex work of negotiating Brexit. This can only reduce uncertainty and the potential for hiccups over the next couple of years.”

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The pound surged to a two-month-high against the dollar after the shock announcement

The property industry is also set to fare well, according to Ed Heaton, founder of property search agency Heaton & Partners.

He said: “I see the decision to hold a General Election in June as a positive for the property market, particularly as the snap nature of the announcement, means that there has been no long build up with buyers and sellers wanting to hold off.

“The outcome is widely expected to be a Tory landslide so the element of uncertainty is limited because of this. The prospect of five more years of Conservative rules will be seen by many as a real positive.”

John Phillips, Just Mortgages and SpicerHaart group operations directors, added: “The forthcoming election is great news for the country as it gets much of the uncertainty out of the way.

“With a weak opposition Theresa May will undoubtedly win and it means that she can go into the Brexit negotiations knowing that she has the weight of the country behind her.”

Property buyers and sellers also seem undeterred by the news with the majority, in both cases, stating they will continue with their property transaction regardless of the general election or its outcome.

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A think-thank said a Conservative victory could bolster economic and political stability

More than half (56.7 per cent) of sellers will be continuing with their property sale and and 59.2 per cent of buyers say the decision to hold a snap election would not put them off any purchase, according to an online survey by eMoov.co.uk,

The FTSE 100 index of the country’s biggest companies ended the day down 2.5 per cent.

It had already dipped before Theresa May’s announcement with commodity firms particularly under pressure, however losses deepened after the news, as investor braced for a fresh wave of uncertainty.

But Russ Mould, investment director at AJ Bell, said: “Investors can take some comfort from the fact that the UK stock market tends to do better under Conservative Prime Ministers and when the incumbent PM wins an election.

"These are both good signs given Theresa May’s strong showing in the polls.”